Check 21

Check Clearing for the 21st Century Act

Check 21 is a U.S. law that allows banks to process checks electronically by creating substitute checks. It enables faster clearing by using digital images instead of moving paper checks.

The law standardized the legal status of substitute checks and image exchange. It paved the way for services like remote deposit capture and mobile check deposit. It enables check clearing using an image replacement document.

Related Terms

Image Replacement Document

IRD

An image replacement document is a paper copy of a check created from a digital image. It is legally...

Check Clearing

Check clearing is the process of moving funds from the payer's bank to the payee's bank for a check ...

Remote Deposit Capture

Remote deposit capture is a service that lets businesses and individuals deposit checks by transmitt...

Check

A check (or cheque in British English) is a written order instructing a bank to pay a specific amoun...

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